$45 Million in Bitcoin Desires Wiped Out as Price Briefly Drops Below $29,000 – Here’s Where BTC Heads -TGN

Leveraged long positions in the bitcoin (BTC) futures market worth $41.5 million were liquidated Monday, the second largest daily for long liquidations so far this month, according to CoinGlass.com.

The spike in long liquidations came as bitcoin fell nearly 3.5% to new one-month lows below $29,000.

The BTC spot price was last just above $29,000 with crypto investors/traders reaping their gains after this year’s impressive performance amid a lack of new positive catalysts to generate further gains in the bitcoin market.

Caution ahead of this week Announcement of US Federal Reserve policy (on Wednesday) and US core PCE inflation (on Friday) could also play a role in the downtrend, as could fresh negative headlines related to Binancethe world’s largest cryptocurrency exchange.

From CoinGlass.com’s Bitcoin Exchange liquidation cardanother wave of long positions would be wiped out if Bitcoin fell below $28,500.

According to the image from CoinGlass.com, long bitcoin positions worth nearly $500 million are at risk of being closed before BTC hits $28,400.

But the bears shouldn’t get too excited, as if bitcoin suddenly surged back to the mid-$29,000 mark, this could trigger a short squeeze, with leveraged short positions worth more than $600 million at risk of being stopped if BTC price were to rise back to $29,600.

This is where Bitcoin (BTC) could be heading

Despite bitcoin’s oversight on Monday, investors remain optimistic about the cryptocurrency’s short-term trajectory.

At least, that’s the takeaway from looking at how bitcoin options markets are priced.

The 25% delta skewness of bitcoin options expiring in seven days was last around 1.25, according to data presented by The blocksuggesting that investors are still paying a premium for bullish call options expiring in seven days compared to their equivalent bearish put counterparts.

The 25% delta skewness of options expiring in 30, 60, 90 and 180 days, meanwhile, all sit at an even higher level between 2 and 6, suggesting options investors are confident that bitcoin’s near-term trajectory will remain largely upside.

That view meshes well with bitcoin’s technical outlook, which remains generally positive.

While BTC price risks falling below its 50-day moving average, just above $29,000 this week, which would open the door for a test of support in the $28,500 area in the form of the late May highs and 100DMA, bitcoin is approaching a strong long-term resistance level.

That is the uptrend that started in late 2022 and has consistently supported price action so far this year.

With this week’s Fed meeting unlikely to push back too much against bets that this week’s rise will be the last of the central bank’s cycle, and with bitcoin still benefiting from increased institutional interest on the back of last month’s wave of spot bitcoin ETF applications from Wall Street heavyweights, the case for a break under this year’s uptrend isn’t too strong at this point.

Any dip to the mid-$28,000 range is likely seen by many longer-term bitcoin bulls as a nice buying opportunity.

Disclaimer: Crypto is a high risk asset class. This article is for informational purposes only and does not constitute investment advice. You can lose all your capital.